Ford has posted its biggest profit in a decade, with a pre-tax $8.6million profit following a 12% increase in revenue and record figures in North America and Asia Pacific Africa. Ford also posted record market share in China, broke near even in South America, as well as reducing losses in the troubled European market, where its retail market share increased.
The news comes off the back of the 2014 Detroit motor show, which saw its biggest attendance since 2003. Ford launched a new generation of its F-series at the show, as well as parading the new Mustang as well as a sophisticated Lincoln show stand for its reinvigorated luxury arm.
In the UK, Ford was the top-selling brand for the 37th consecutive year, with sales increasing by 10.26% to 310,865 sales, giving it 13.72% market share, ahead of Vauxhall and third-placed VW. The Ford Fiesta and Focus were the UK’s best-selling cars respectively, with the Ford Transit the top commercial and overall sixth-best selling vehicle.
The road to recovery has not been easy for Ford, with tough decisions made which have seen an 18% reduction in capacity in Europe through the closure of its Southampton operations, and Genk, Belgium plant delaying the new Mondeo.
Further closures have been announced globally, such as the 2016 closure of its Australian manufacturing arm, while here in the UK, workers at Ford’s remaining facilities are considering strike action over job security and pensions. Ford’s $1.3billion fourth quarter profit was also down on 2012’s figure by $402 million.
Ford expects to post between $7-8billion in pre-tax profit in 2014, albeit with less operating margin than in 2013.
Chrysler is set to make its public announcement on its 2013 performance tomorrow (Jan 29), with General Motors reporting on 6 February.